Business, 05.05.2021 03:20 alexabbarker9781

CRD Company prepares monthly operating and financial budgets. Estimates of sales in units are made for each month. Production is scheduled at a level high enough to take care of current needs and to carry into each month 30% of the next montha€™s unit sales. Direct materials, direct labor, and variable manufacturing overhead are estimated at $10, $8, and $3 per unit, respectively. Total fixed manufacturing overhead is budgeted at $520,000 per month. The inventory at January 1 consists of 20,000 units. Sales for April, May, June, and July are estimated at 80,000, 100,000, 95,000, and 110,000 units with a rate of $60 per unit.

Variable selling and administrative expenses are $20 per unit. Fixed selling and administrative expenses are $800,000 per month.

Required:
a. Prepare a sales budget for the second quarter by month.
b. Prepare a schedule showing the budgeted production in units for April, May, and June.
c. Prepare a schedule showing the budgeted cost of goods sold for the same three months.
d. Prepare a budgeted income statement for the second quarter by month.

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CRD Company prepares monthly operating and financial budgets. Estimates of sales in units are made f...

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